Oil Prices Stable ‘Despite Middle East Conflicts’

Homeowners and business leaders may be concerned about the ongoing crisis in the Middle East, and its potential impact on heating oil prices.

The region is a major global oil producer, and the continuing political uncertainty threatens to disrupt the supply of oil to Europe.

However, the situation for UK oil consumers is surprisingly positive. A significant rise in production in North America is helping to keep markets well-supplied.

The International Energy Agency (IEA), which oversees energy use in the west, believes that prices will continue to fluctuate in line with patterns that heating oil users have seen in previous years.

“Despite armed conflict in Libya, Iraq and Ukraine, the oil market today looks better supplied than expected, with an oil glut even reported in the Atlantic basin,” the IEA said in its monthly report.

“US and European Union sanctions on the Russian oil sector are not providing oil markets with much support either. The consensus in the industry seems to be that neither set of sanctions will have any tangible near-term impact on supplies.”

The IEA said that even for the medium term, the impact of political uncertainly on oil prices appears “questionable”.

“The market appears confident that the Organisation of the Petroleum Exporting Countries can deliver the production increase needed from it to meet rising demand expected in the second half of the year,” it added.